Brasília – The government raised the tax rate on operations for the acquisition of foreign currency in cash from 0.38% to 1.1%. The edict changing the Tax on Financial Operations (IOF) was published this Monday (2) in the Federal Official Gazette.
The other forms of acquisition of goods and services abroad, such as credit, debit or prepaid card, remain with the rate of 6.38%. The increase in annual tax collection is estimated to reach BRL 2.377 billion (USD 690.8 million).
Fernando Mombelli, general coordinator of Taxation at the Federal Revenue Services, said that the measure tries to align the IOF tax rate with other similar instruments in operations with foreign currency. The measure goes into force tomorrow (3).
Besides this change, the edict also defines a zero rate for the IOF “in settlements of simultaneous foreign currency operations for the inflow of resources into the country, derived from the change of status of the foreign investor from direct investment to investment in shares tradable in stock market, as defined by regulation of the National Monetary Council” and under Law number 4.131. The law regulates the investment of foreign capital and remittances abroad.
*Translated by Sérgio Kakitani
